Blaine tobacco distributor charged with tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Anoka County Attorney’s Office recently charged Ali Ibrahim Muslem Al-Fiyadh, of Blaine, with one felony count of aiding in the filing of false or fraudulent tobacco tax return and one gross misdemeanor count of knowingly failing to pay tobacco tax. 

According to the complaint, Revenue officials monitored a vehicle that was suspected of smuggling untaxed tobacco products into Minnesota as it made multiple stops at tobacco wholesalers in suburban Chicago in November 2022. A traffic stop was conducted by the Minnesota State Patrol on vehicle’s way back into Minnesota. It was discovered that Mr. Al-Fiyadh was the driver and sole occupant of the vehicle. He allegedly told troopers that he was transporting $10,000 worth of tobacco products. Being a licensed tobacco distributor in Minnesota, Mr. Al-Fiyadh was allowed to leave with the products. However, the complaint states that the tobacco tax returns filed through Mr. Al-Fiyadh’s tax preparer showed he failed to report the alleged $10,000 he had during the traffic stop and subsequently evaded paying $9,500 in tobacco tax. 

The felony charge carries a maximum penalty of five years in jail, a $10,000 fine, or both. Each tax-related gross misdemeanor charge carries a maximum penalty of one year in prison, a $3,000 fine, or both. Defendants are presumed to be innocent unless and until proven guilty.

This is an example of the department’s ongoing efforts to uniformly enforce the state’s cigarette and tobacco laws. For more information on the tax laws related to tobacco products in Minnesota, visit our website. 

Although most taxpayers comply with tax laws voluntarily, the Minnesota Department of Revenue takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.

The Minnesota Department of Revenue has a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws.  Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500.  Tips can also be submitted to the department via email at tax.fraud@state.mn.us. Tipsters may choose to remain anonymous. 

Get the latest news and updates from the Minnesota Department of Revenue by following the department on Facebook , Instagram, and on X (formerly Twitter) or by signing up for our email subscription list.